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TORONTO, Sept. 4, 2020 /CNW/ - Chemtrade Logistics Income
Fund (TSX: CHE.UN) ("Chemtrade" or the "Fund")
announced today that it has given notice that it will redeem (the
"October Redemption") on October 5,
2020 (the "Redemption Date") a further $12.5 million principal amount of its 5.25%
convertible unsecured subordinated debentures due June 30, 2021 (the "2021 Debentures"), in
accordance with the terms of the trust indenture, as amended and
supplemented by supplemental indentures thereto (collectively, the
"Indenture"), pursuant to which they were issued.
The record date for determining the holders whose 2021
Debentures are to be redeemed on the Redemption Date shall be
September 25, 2020. The 2021
Debentures shall be redeemed on a pro rata basis to the
nearest multiple of $1,000 in
accordance with the principal amount of the 2021 Debentures
registered in the name of each holder, or in such other manner as
deemed equitable, subject to any applicable regulatory
approvals.
On the Redemption Date, holders of the 2021 Debentures to be
redeemed in connection with the October Redemption will receive
approximately $1,013.9139 for each
$1,000 principal amount of 2021
Debentures, being equal to $1,000,
plus all accrued and unpaid interest thereon to but excluding the
Redemption Date. The 2021 Debentures that are redeemed in
connection with the October Redemption will cease to bear interest
from and after the Redemption Date.
Formal notice of redemption has been delivered to the registered
holder of the 2021 Debentures in accordance with the terms of the
Indenture. The aggregate amount of 2021 Debentures outstanding as
of the date hereof is $126.5 million.
Chemtrade previously announced that it will redeem $100.0 million principal amount of the 2021
Debentures on September 29, 2020 (the
"September Redemption"). Following completion of the
September Redemption on September 29,
2020 and the October Redemption on the Redemption Date,
$14.0 million aggregate principal
amount of the 2021 Debentures will remain outstanding.
About Chemtrade
Chemtrade operates a diversified business providing industrial
chemicals and services to customers in North America and around the world. Chemtrade
is one of North America's largest
suppliers of sulphuric acid, spent acid processing services,
inorganic coagulants for water treatment, sodium chlorate, sodium
nitrite, sodium hydrosulphite, and phosphorus pentasulphide.
Chemtrade is a leading regional supplier of sulphur, chlor-alkali
products, liquid sulphur dioxide, potassium chloride, and zinc
oxide. Additionally, Chemtrade provides industrial services such as
processing by-products and waste streams.
Caution Regarding Forward-Looking Statements
Certain statements contained in this news release constitute
forward-looking information within the meaning of certain
securities laws, including the Securities Act (Ontario). Forward-looking information can be
generally identified by the use of words such as "anticipate",
"continue", "estimate", "expect", "expected", "intend", "may",
"will", "project", "plan", "should", "believe" and similar
expressions. Specifically, forward-looking information in this news
release include statements with respect to the September Redemption
and the October Redemption, including expected timing and the
redemption price for the 2021 Debentures to be redeemed thereof.
Forward-looking statements in this news release describe the
expectations of the Fund and its subsidiaries as of the date
hereof.
These statements are based on assumptions and involve known and
unknown risks, uncertainties and other factors that may cause
actual results or events to differ materially from those
anticipated in such forward-looking statements for a variety of
reasons, including without limitation the risks and uncertainties
detailed under the "Risk Factors" section of the Fund's latest
Annual Information Form and the "Risks and Uncertainties" section
of the Fund's most recent Management's Discussion &
Analysis.
Although the Fund believes the expectations reflected in these
forward-looking statements and the assumptions upon which they are
based are reasonable, no assurance can be given that actual results
will be consistent with such forward-looking statements, and they
should not be unduly relied upon. With respect to the
forward-looking statements contained in this news release, the Fund
has made assumptions regarding: the timing and completion of the
September Redemption and the October Redemption; there being no
significant disruptions affecting the operations of the Fund and
its subsidiaries, whether due to labour disruptions, supply
disruptions, power disruptions, transportation disruptions, damage
to equipment or otherwise; the timely receipt of required
regulatory approvals; and global economic performance.
Except as required by law, the Fund does not undertake to update
or revise any forward-looking statements, whether as a result of
new information, future events or for any other reason. The
forward-looking information contained herein are expressly
qualified in their entirety by this cautionary statement.
Further information can be found in the disclosure documents
filed by the Fund with the securities regulatory authorities,
available at www.sedar.com.
SOURCE Chemtrade Logistics Income Fund
